Karl Benz is the German inventor who created the first "true" automobile at his Mannheim shop in 1885. In contrast with Daimler's vehicle, which is a horse carriage adapted to run with an engine, the "Motorwagen" has a chassis designed to run using engine power. The three-wheeled wagon was patented on January 29, 1886 was powered by the first four-stroke engine patented by Benz.
A year earlier, Gottlieb Daimler and Wilhelm Maybach patented the "grandfather clock engine" that became a prototype of modern gas engines. This was used to power the first carriage without a horse.
Mercedes-Benz traces it roots from Benz & Cie, established in 1871, and Daimler Motoren Gesellschaft (DMG), established in 1890. They sold the first automobile in 1892.
The "Agreement of Mutual Interest" signed in 1924 laid down the future merger of Benz & Cie and DMG that officially took effect on June 28, 1926. The economic necessity of World War I influenced the forging of the agreement that eventually gave birth to Daimler -Benz.
The brand Mercedes-Benz came out after the merger. The brand Daimler was already a France and United Kingdom license and hence, no longer available for Daimler-Benz. The brand name Mercedes was given to a model designed by Maybach, one of the founders of DMG. In 1899, the name "Mercedes" has been painted by racer Emil Jellinek in a DMG racing car in honor of his daughter to keep good luck. In 1902, it was formally adopted as a model name of an automobile manufactured by DMG.
After the merger, the brand name Mercedes-Benz was applied to all models of automobiles made by Daimler-Benz. Mercedes-Benz is thus the world's longest running automobile brand produced continuously. The three-pointed star designed by Gottlied Daimler and the traditional laurel wreath used by Karl Benz added by the text of "Mercedes Benz" brand name was used as the company's logo. The plain ring with the three-pointed star used by the company today was not used until 1937.
Daimler-Benz assembled Hitler's armored Mercedes limousine in 1943. Aside from limousines, significant numbers of noted sports cars were also produced such as the SSK developed by Ferdinand Porsche. Classic cars like the 1955 300SL Gullwing Coupe landed as a Ralph Lauren collection. The 300SL of 1954 also made a hit in the New York Automobile Show.
Less expensive cars were also developed, such as the Volkswagen prototypes built in Stuttgart with Porsche. The reputation for quality and reliability has long been associated with the Mercedes-Benz name. JD Power noted its increased focus on costs and volume, making it a benchmark for the industry average for initial quality in 2005.
In 1998, Daimler-Benz merged with American's Chrysler LLC. The resulting company was then known as DaimlerChrysler AG. In reality, it was actually Daimler-Benz that bought out the ailing Chrysler. On May 14, 2007, Daimler AG and Chrysler LLC separated. The shareholders of Daimler consider the move a favorable to them because it will allow Mercedes-Benz to be free to decide for itself without the distraction from its US partner. Daimler however retains a 20 percent minority stake in Chrysler.
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